Scribd
Upload
95 views1 page

Understanding Cloud Kitchens Explained

Cloud kitchens are commercial food production facilities where multiple restaurants rent space to prepare delivery-optimized menu items. They are located in industrial areas for efficient driver pick-up. Cloud kitchens take advantage of food delivery apps and use data to determine high demand foods and times. There are different cloud kitchen business models including adding delivery to existing restaurants, running virtual restaurants, or operating a shared commercial kitchen space. Foreign direct investment is permitted in marketplace-based e-commerce models like cloud kitchens under automatic route.

Uploaded by

Rishabh Sen Gupta
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
95 views1 page

Understanding Cloud Kitchens Explained

Cloud kitchens are commercial food production facilities where multiple restaurants rent space to prepare delivery-optimized menu items. They are located in industrial areas for efficient driver pick-up. Cloud kitchens take advantage of food delivery apps and use data to determine high demand foods and times. There are different cloud kitchen business models including adding delivery to existing restaurants, running virtual restaurants, or operating a shared commercial kitchen space. Foreign direct investment is permitted in marketplace-based e-commerce models like cloud kitchens under automatic route.

Uploaded by

Rishabh Sen Gupta
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Q. What is a cloud kitchen?

Ans. Cloud kitchens are centralized licensed commercial food production facilities where
anywhere from one or two to dozens of restaurants rent space to prepare delivery-optimized
menu items. One restaurant may run multiple brands, or virtual restaurants, all operating
under one roof, or the kitchen may be run like an incubator, shared by different purveyors.
Cloud kitchen menu items are optimized for ease of production and reliability of food quality
upon delivery. Often physically located in out-of-town industrial complexes, cloud kitchens
may offer driver parking, driver waiting areas (often with screens to monitor order times) and
check-in stations for seamless driver pick-up. All designed to get food out the door and into
the customer’s hands as fast as possible. 

Cloud kitchens are uniquely tech-enabled. They take advantage of the now ubiquitous food
delivery apps on your smartphone, such as UberEats, Grubhub, and Doordash. In doing so,
they use large amounts of data to determine what types of foods to produce for specific
neighborhoods and when the demand is likely to be greatest. 

Q. What are the different types of cloud kitchen business models?

Ans. The following are options available.

Adding a delivery outlet to the existing brick and mortar model.

Running a virtual or ghost restaurant.

Running a shared cloud restaurant.

Q. What are the implications of FDI on running a Cloud kitchen?

Ans. The Marketplace based model of e-commerce means providing of an information


technology platform by an e-commerce entity on a digital & electronic network to act as a
facilitator between buyer and seller. As per guidelines in the e-commerce sector, 100% FDI
under automatic route is permitted in marketplace model of e-commerce. Cloud kitchens can
be said to be based on such models.

You might also like